Starting April 1, 2022, Thailand will no longer accept cryptocurrencies as means of payment for goods and services according to a statement released by the Securities and Exchange Commission (SEC) in partnership with the Bank of Thailand (BOT).
The new imposed ruling was in line with the discussions between the two financial institutions of the country regarding the regulations of crypto activities and their impact on the overall economy of Thailand, per the statement released by the SEC Saturday, March 23.
‘[BOT and SEC] saw the need to regulate and control the use of digital assets as a medium for payment of goods and services because it may affect the stability of the financial system and the overall economy,’ the statement reiterated.
These two financial institutions mentioned in their joint statement the risks for crypto payments which include the possibility of Baht losing its value, the risk of cyber theft and of personal data leakage that may be used for money laundering.
Furthermore, they emphasised that all types of digital asset operators should not provide services or act in a manner that promotes this mode of payment. This includes advertising and solicitations that encourage crypto payments to their users.
The SEC also said that establishing a system to facilitate the payment of goods and services is also prohibited under the new rule.
Business operators that provide these crypto services are obligated to comply with the new rules within 30 days of the ruling. Noncompliant entities with the new rules are subjected to legal actions such as temporary suspension or cancellation of their services.
This, however, does not mean that both the SEC and BOT do not support the crypto industry in Thailand. The regulations will only affect the crypto payment services and not the trading activities of the country.
‘[The BOT and SEC], as well as other government agencies, see the benefits of various technologies behind digital assets such as blockchain and emphasize and support the use of technology to further innovation,’ according to the statement.
It was also emphasized that the use of blockchain technology and digital assets for investments is not part of the scope of the new regulation.
Currently, the government of Thailand is working on a new regulatory framework concerning the ‘red lines’ of the crypto industry in the country. This is done with the help of BOT and SEC and was confirmed last December 2021 by Cointelegraph.
The country also has a friendly crypto stance when it comes to investments with an announcement last March that exchanges are exempted from the 7% value-added tax (VAT) until 2023.
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